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  • Newsletter Issue #812: Apple Addresses the Apple Music Royalty Problem

    June 22nd, 2015

    Although Apple Music hasn’t even debuted yet, it’s already received plenty of publicity. In an example of good intentions possibly going bad, that publicity appears to be the result of the promised three-month free trial. As the term implies, it means you’ll have a reasonable amount of time to sample the service before you decide if it’s really worth $9.99 per month, or $14.99 for up to six users.

    But in the goal of doing something that ought to have a positive impact, Apple apparently failed to consider the rights of the artists who create, produce and perform that music. So while over 70% of the revenue from Apple Music will be distributed to the music companies and, one hopes, to the composers and artists, the original plan called for no payment to be made during the free-trial periods.

    Now from an accounting point of view, I suppose that this position made sense. Apple was giving up money to entice more people to subscribe to the service, thus improving the opportunity for artists to earn money. So, therefore, the artists ought to consider the reality of the situation and take a long view. Yes, I’m speculating here, but that’s how it seems to be.

    Continue Reading…



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